LNG

Complex for processing ethane-containing gas and LNG production in Leningrad Region

Strategy

The creation of a large-scale complex that will process ethane-containing gas and produce liquefied natural gas (LNG) near the settlement of Ust-Luga, Leningrad Region, is a practical manifestation of the new economic model for the comprehensive monetization of hydrocarbon resources.

This enterprise is of great significance for Russia's social and economic development. The plant will make it possible to increase Russian exports of LNG and liquefied petroleum gases (LPG). The production of ethane, which is in high demand in the domestic industry, will grow substantially.

Seaport of Ust-Luga. Photo by Ust-Luga Company
Seaport of Ust-Luga. Photo by Ust-Luga Company

Seaport of Ust-Luga. Photo by Ust-Luga Company

Figures and facts

The complex will be processing 45 billion cubic meters of gas and producing 13 million tons of LNG, up to 4 million tons of ethane and over 2.2 million tons of LPG per year. The gas remaining after the processing (about 20 billion cubic meters) will go into Gazprom's gas transmission system.

Combining the production of LNG and ethane within one industrial site will have a strong beneficial effect on the economics and specific indicators of the project and will considerably mitigate the resource and price risks.

The enterprise will be processing ethane-containing gas extracted by Gazprom from the Achimov and Valanginian deposits of the Nadym-Pur-Taz region.

During its most active phase, the construction will involve over 25,000 specialists, with more than 5,000 permanent jobs to be created to man the operation of the facility.

The ethane produced at the plant is to be supplied to a high-potential gas chemical facility (a project by RusGazDobycha), which will be producing over 3 million tons of polymers per year.

Project implementation

In May 2017, Gazprom and RusGazDobycha signed a Memorandum of Intent to implement projects aimed at advancing petrochemical production on the basis of the Achimov and Valanginian deposits within the Nadym-Pur-Taz region, as well as extracting and processing gas and gas condensate from the fields within the Tambey cluster (Tambeyskoye and Tasiyskoye fields owned by Gazprom).

In March 2019, Gazprom and RusGazDobycha made a decision on the final configuration of the project for a large-scale complex for processing ethane-containing gas and LNG production near the settlement of Ust-Luga, Leningrad Region. Thus, the parties moved to the implementation stage in the project.

The project operator is RusKhimAlyans, a special-purpose company established on a parity basis by Gazprom and RusGazDobycha.

It is expected to put the first train of the complex into operation in the second half of 2023 and the second train in late 2024.